The future of the psychedelics industry is changing quickly. What was once a pipe dream of making incredible medicines more accessible is now a reality. It seems like new headlines are published daily about the current state and future of the psychedelics industry. But where exactly are we headed in 2023 and beyond? We reached out to psychedelics industry leaders and asked them — where do you see the future of the psychedelics industry going? Here’s what they had to say.
7 Industry Experts Weigh in on the Future of Psychedelics
Hillary Lin, MD. – Curio
Going forward, the drug development companies (which all started around 2017 or so) are reporting announcements regarding their Phase 2 or 3 trials, which are significant whether they are positive or negative. We will see many companies shut down and a couple come out as leaders in the drug development space of psychedelics.
“The world will be transformed in all likelihood by psychedelics by 2025.”
On the regulatory side, both state and federal efforts are playing out for psychedelic decriminalization and legalization, which will likely result in changes throughout 2023 and 2024. The world will be transformed in all likelihood by psychedelics by 2025. It’s almost certainly going to be a positive direction, given the broad support from both sides (Democrat and Republican) and various powerful groups throughout the country and around the world.
Ken Belotsky – Negev Capital
The outlook for the future of the psychedelic market is generally positive, as there is a growing interest in the potential therapeutic benefits of psychedelics for conditions such as depression, anxiety, and PTSD.
Generation I companies, which are in more advanced phases of clinical development, have better chances of being first approved by the FDA. However, due to weak intellectual property protection, they may have limited interest from big pharmaceutical companies and M&A potential.
On the other hand, Generation II companies have strong IP protection and similar structures to classical psychedelics. They have the potential to be more effective and have fewer side effects than existing psychedelics. The strong IP protection, with a composition of matter patents and a higher probability of passing clinical trials successfully, will attract more interest from big pharma and drive M&A potential.
The first FDA approvals of classical psychedelics like psilocybin and MDMA will give institutional investors more confidence to allocate funds to Generation II companies, driving market cap to new levels. The outlook for the sector is bullish, especially for Generation II companies, as the interest in this field is proliferating. Therefore, we will launch Negev Capital Fund II with a capital of $250 million this year to finance clinical trials of the best companies in this sector.
Kimberly Adams – Holo Therapeutics
There has been little investigation into the rollout of these medicines and their qualitative effects on the individual. The training programs are, at times, offering one session with the medicine they are supposed to administer (if that), but that is far from enough. There is a fundamental disconnect that these are not pharmaceuticals. They are tools for insight and should never be positioned as treatments.
Dr. Prash P. – Enosis Therapeutics
Drug development has attracted the vast majority of both funding and interest over the last few years, understandably, given the potential for exponential revenue growth that the pharmaceutical model lends itself to. However, that market is now incredibly saturated.
Additionally, this trend has created a lop-sided industry that sees a distinct lack of investment in the supporting infrastructure necessary for any of these drugs to see clinical use. Put simply, the enormous amount of capital invested in drug development highlights an opportunity; a need for more holistic growth of the industry for drugs to be ably and safely deployed.
Forward-thinking investors and entrepreneurs will recognize this gap and capitalize by developing and funding the rest of the building blocks of the industry.
Notably, we recognize three key areas as being:
- Therapist training
- Digital therapeutics
- Service delivery including but not limited to clinics and clinical protocols
Nicholas Kadysh – PharmAla Biotech, Board Chair for Psycan.
Ketamine is legal almost anywhere in the world. But what changed during the pandemic is that the FDA introduced a rule where consumers can receive Ketamine via the mail, administer the Ketamine via a lozenge without a facilitator present, and then conduct the guided therapy via a virtual meeting format. This can lead to dangerous outcomes and opens up a window for bad actors to sell Ketamine legally via a shipment without the intent to actually follow through on any guided therapy.
This ruling hasn’t been rolled back, but the FDA could do it anytime. A rollback of this ruling is more likely in the present day than in the past, as the FDA acted too slowly on Purdue Pharma and the opioid crisis, creating a more trigger-happy FDA when acting upon operators who are nefariously distributing controlled substances.
Beyond that, my legalization or regulatory breakthrough predictions are:
- MDMA around 2025
- Psilocybin around 2027
Yitz Klien – Keefx
The future is bright for the psychedelics market. You can’t hide the data. It’s out there and spreading. People need this. Technology equals knowledge, which you can share at lightning speed to reach a critical mass; I’m looking forward to credible infrastructure, proper oversight, and distribution and allowance for private, natural, and IP-driven pharma. Colorado and Oregon will hopefully yield positive results for the USA.
Dillon DiNardo – Lab Design Labs
Breakthroughs in understanding the psychological mechanisms central to treatment outcomes will drive the future of psychedelic therapeutics. As a result, the next generation of psychedelic therapies will have significantly increased efficacy.
Just a few months into 2023, the future of the psychedelics industry is looking bright. Watching this industry unfold over the next five years will undoubtedly bring surprises, more growth, and continued excitement around the possibilities of psychedelic medicines.
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